China's industrial sector profits increase by over 27%

In September this year, profits from China’s industrial firms reportedly increased 27.7% as China’s building boom increased demand and prices from factories.

September’s growth tops the 24% rise seen in August this year. Overall, this is marks a six year high.

The surge marks an increase in industrial profits of 22.8% in January-September 2017 from the same three quarters in 2016.

See also: 

China's exports to North Korea increase by 20.9% 

One billionaire created every two days in Asia

Latest edition of Business Review Asia out now! 

According the National Bureau of Statistics, total profits in September rose to $99.51bn. This marks the biggest rise since December 2011, which saw an increase of 31.5%.

It is hoped the surge will allow the government to tackle corporate debt, and allow policymakers to restructure SOEs.

The news comes as the government cracks down on pollution, which did spark fears of a winter shortage in goods like steel and copper, which is responsible for the rise in prices.

At the recent Communist Party Congress, leader Xi Jinping stated an aim to deepen market reforms which are the same time strengthening state companies.

The high earnings for September were expected by many, as the Product Price Index (PPI) rose by 6.9% from a year earlier.

Steel, glass and copper pipes are the main profit-making areas for China which is the world’s top steel producer – however, mining profits have also seen a massive surge of 474% from a year earlier, with earning in the mining industry increasing 5.9 times in that period, and manufacturing profits rose 19.6%.

In contrast, electricity, gas and water production all fell by 18.3% according to the Asia Times.


Featured Articles

People Moves: Pine Labs, Deutsche Bank, McKinsey, Fortinet

Pine Labs names former Amazon exec as chief people officer, Fortinet hires government affairs leader for APAC, McKinsey India poaches Accenture HR exec

Dialight envisions a world of industrial safety with LEDs

Reliance on inefficient lighting technologies are not only harmful to the environment, but also increase injury risk and cost

Top 10: Must-see speakers at TECH LIVE LONDON 2022 event

Technology leaders from IBM, Oracle, Vodafone, JP Morgan, Accenture and the US Space Force are among the 80-plus speakers at upcoming TECH LIVE LONDON

Vodafone Business cyber leader Kawalec speaks at Cyber LIVE

Leadership & Strategy

Twitter timeline – how Musk pulled off a hostile takeover

Leadership & Strategy

Top 10 Asia restaurants, from Tokyo’s Den to Bangkok’s Sorn

Leadership & Strategy